Shares of this micro-cap stock associated with the ‘Aerospace & Defence’ industry jumped around 4 percent in Tuesday’s trading session after the company signed a Memorandum of Understanding (MoU) to develop new generation (Gen) ammunition.
With a market capitalization of Rs 867.05 crores, the stocks of Nibe Limited closed at Rs 660.25 on Tuesday, gaining around 4 percent as compared to the previous close of Rs 634.15 apiece.
Such bullish stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has signed a Memorandum of Understanding (MoU) with “Munitions India Limited” (MIL).
The MoU pertains to the development of New-Generation Ammunition, upgrade the conventional ammunition, and explore export opportunities for such products.
During the recent financial quarters, the company’s prime business indicators such as operating revenues and net profits rose in numbers with the former increasing from Rs 25.80 crores during Q1FY23-24 to Rs 41.18 crores during Q2FY23-24 and, the latter, keeping the timeframe the same, shifted from Rs 82 lakhs to Rs 2.80 crores.
The profitability metrics of the company, on a standalone basis, showed positive movements with the return on equity (RoE) increasing from 1.99 percent during FY21-22 to 5.89 percent during FY22-23. Moreover, the return on capital employed (RoCE), during the same horizon, rose from 3.86 percent to 9.02 percent.
According to the shareholding pattern data for the quarter ended September 2023, the company’s Promoters hold a 55.32 percent stake, and the Foreign Institutional Investors (FIIs), recently increasing their stake, currently hold a 3.88 percent stake in the company.
Incorporated in 2005, Nibe Limited is an India-based company that is engaged in the business of providing services in the field of design, supply, erection, testing, and commissioning of low & medium-voltage lines.
The company also manufactures assemblies of mobile weapon launchers, structural and engineering systems for naval applications, and oxygen generation plant skids.
Written by Amit Madnani
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